Energy Efficiency Programs at BTU. Mike Connor, CEM, CDSM Senior Energy Accounts Manager

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1 Energy Efficiency Programs at BTU Mike Connor, CEM, CDSM Senior Energy Accounts Manager

2 Background Prior to 2013, energy-efficiency incentive programs focused on technology. Residential Solar photovoltaic Solar water heater HVAC/Heat Pump CFLs/LEDs Commercial Solar photovoltaic Solar water heater Lighting Reflective roof coating

3 Background Decided to revise programs to focus on the building envelope. Researched Standard Offer Programs mandated for investor-owned utilities in Texas. BTU created two new programs based on the SOP model: SmartHOME SmartBUSINESS

4 Energy Efficiency Program Three Ways to Save Money and Live Comfortably

5 What is it? SmartHOME helps to educate customers and encourage energy efficiency improvements that help them reduce their energy costs and improve the comfort of their home. SmartHOME helps to reduce BTU s need to build or purchase additional generation.

6 Who s eligible? SmartHOME is available to any owner of an existing single- or multi-family dwelling within the BTU service territory and billed on a residential rate. Renters should contact their landlord about participation in the program.

7 What s available? SmartHOME offers incentives to customers adopting any of these three approved energy efficiency measures and meets program guidelines. Insulation (attic and wall) Windows Solar Screens Customers have the option of using a contractor or doing the work themselves.

8 Attic Insulation Attic insulation savings are per square foot of treated attic area above a conditioned space. They are based on the current level of attic insulation in the home from R-0 to R-22. Attic insulation R-30 or greater is recommended throughout Texas as prescribed by the US Department of Energy (DOE).

9 Wall Insulation Wall insulation savings are per square foot of treated wall area (gross wall area less window and door area). They are based on R-0 increased to R-13. The standard throughout Texas for adding wall insulation to an existing wall cavity is R-13 as prescribed by DOE.

10 Windows Window savings are per square foot of window, inclusive of frame and sash. For a window to qualify, it must meet ENERGY STAR criteria for the Southern Region as deemed by

11 Solar Screens Solar screens must be installed on windows facing predominately east or west and receive significant direct sun exposure. They must block at least 65% of the solar heat gain to qualify. Savings are per square foot of window or door opening.

12 Incentive Payments Incentive payments for all three measures are based on BTU s cost for new peaking generation. They are a minimum of 10%, but not more than 25%, of the total installed cost of the project. 100% of incentive payment is paid as soon as inspections are completed and approved. The program is subject to the availability of funds and may be cancelled at anytime without notice.

13 Process Customer completes an application online and submits project photos prior to work being done. BTU contacts customer upon receipt to let them know if a pre-work inspection is needed. Customer has the work completed and submits contractor invoices. BTU will schedule and complete a post-work inspection, if needed. BTU calculates the incentive payment and delivers it to the customer in the form of a check.

14 Results For calendar year 2016: Total projects 129 Total kw saved 57 Total incentive payments - $69,685 Total cost of projects - $110,428

15 Results Year Projects kw Saved Incentive Payments Project Costs $52,762 $383, $66,370 $490, $50,792 $416, $69,685 $110,428

16 Energy Efficiency Program Helping Businesses Reduce Energy Costs

17 What is it? BTU s SmartBUSINESS Program serves to educate customers and encourage energy efficiency improvements that help customers reduce their energy cost. SmartBUSINESS also serves to reduce BTU s need to build or purchase additional generation.

18 Who s eligible? BTU s SmartBUSINESS Program is available to any non-residential customer within the BTU service territory which is billed on a commercial or industrial rate.

19 What s available? BTU s SmartBUSINESS Program will review any energy efficiency measure that an eligible customer asks to be reviewed. The energy efficiency measure must reduce kw demand by at least 20% from the existing conditions. Incentive payments will be paid for replacing equipment, not for removal of equipment or the installation of distributed generation.

20 Typical Projects Lighting retrofit Chiller replacement HVAC replacement VFD installation Commercial ice machine replacement

21 Incentive Payments Incentive payments are based on BTU s cost for new peaking generation. They are a minimum of 10%, but not more than 20%, of the total installed cost of the project, up to a cap of $30,000 per customer per fiscal year. 100% of incentive payment is paid as soon as inspections are completed and approved. The program is subject to the availability of funds and may be cancelled at anytime without notice.

22 Process Customer completes an application and submits project proposal prior to work being done. It is the customer s responsibility to prove the required reduction in kw demand. BTU contacts customer after receiving proposal to schedule a pre-work inspection. Once approved, customer completes work and submits project invoices. BTU schedules and completes a post-work inspection. BTU calculates the incentive payment and delivers it to the customer in the form of a check.

23 Results For calendar year 2016: Total projects - 26 Total kw saved Total incentive payments - $222,500 Total cost of projects - $1.3 million

24 Results Year Projects kw Saved Incentive Payments Project Costs $2,544 $36, $205,233 $868, ,120 $322,837 $1,941, $222,529 $1,308,559

25 Questions? Contact an Energy Accounts Manager SmartHOME Elisabeth Thompson SmartBUSINESS Mike Connor